Public-Private Partnerships

“A well-designed PPP Contract is clear, comprehensive and creates certain roles and responsibilities for the contracting parties.”

While PPP risks vary depending on the services and assets involved, certain risks are common for many types of PPP projects.

The aim of structuring PPP Contract is to ensure stability and sustainability of the project.

The quality and the volume of the services that is expected from the private party should be clearly defined under the PPP Contract.

Key Performance Indicators (KPIs) have to be identified in the contract. Performance is assessed in terms of outputs, rather than inputs in PPP Contracts.

The procedures, sources and formulas regarding the private sector payment should be clearly defined under the PPP Contract.

Being long term and complex projects, it is impossible to state all the future possibilities under the contract.

Hence, PPP Contracts should have flexible structures to deal with the changing circumstances.

The resolution methods of the contractual disputes should be clearly defined under the PPP Contract.

The nature of PPP projects create a large area for the occurrence of disputes. Resolution of disputes effectively and in a short time period prevents the interruption of services.

The circumstances which bring the early termination and the consequences of the early termination should be clearly defined under the PPP Contract.